BREAKING: Tinubu’s Naira Devaluation, Subsidy Removal Saved Nigeria From Financial Crisis, Says Kalu Aja

Kalu Aja, a financial analyst and educator, highlighted that Nigeria would have faced severe financial challenges if President Bola Tinubu had not opted for floating the naira and eliminating fuel subsidies......Read The Full Article>>.....Read The Full Article>>

Aja clarified that the actions of floating the Naira and discontinuing fuel subsidies were imperative, emphasizing that there were no alternatives available to the country.

Nonetheless, in a recent post on his X handle, the financial expert pointed out that Tinubu mishandled the distribution of relief measures.

Aja highlighted the government’s delayed realization of the need to import food and the sluggish planning process, noting the absence of CNG buses as promised.

He suggested that Tinubu could have lessened the impact of these policies by eliminating duties on food and introducing new public transportation options.

Aja emphasized that floating the Naira and scrapping fuel subsidies were not choices but necessities for Nigeria.

“A decision means Nigeria could have chosen not to float the Naira and retain subsidies, leading to complete bankruptcy – a scenario where we’d be using vouchers to buy bread.

Tinubu’s misstep lay in the execution of relief measures. Initially, proposed palliatives were at N8,000. It took the government a year to realize the need for food imports and devise a plan. Currently, the promise of CNG buses remains unfulfilled.”

“If the president had declared a complete waiver of duties and taxes on food while introducing innovative public transport options, the impact would have been more manageable. This aspect is crucial.

The insistence on ‘reversing the policy’ overlooks the reality that our expenditure on PMS subsidies surpassed investments in health, education, and infrastructure over time; this is an unsustainable approach.”